Essay on Project Management and Cost

1. Discuss why many information technology professionals may overlook project cost management and how this might affect completing projects within budget. Many information technology professionals have a poor attitude toward project cost management because they have had bad experiences in the past, they think it is a job for accountants or someone who deals with money and not them. This negative attitude contributes to the poor track record of completing projects within budget.

2. Explain some of the basic principles of cost management, such as profits, life cycle costs, tangible and intangible costs and benefits, direct and indirect costs, reserves, and so on. Cost management involves the process to ensure a project team completes a project within an approved budget. Profits, which are revenues after subtracting expenses. The life cycle costs, includes total cost of ownership or development, plus project support costs. Costs or benefits are tangible, when they are easily measured in dollars. The intangible costs and benefits are difficult to quantify in monetary terms, such as goodwill, prestige, or statements of improved productivity. Direct costs are directly related to producing the products and services of the project at hand, while indirect costs are indirectly related to performing of the project, such as electricity, and paper towels. Reserves are dollars included in a cost estimate to provide a cushion for future situations that are difficult to predict.

3. What is meant by a sunk cost? Give examples of typical sunk costs for an IT project as well as examples from your personal life. Why is it difficult for people to ignore them when they should? A cost that has already been incurred and thus cannot be recovered. The example of a sunk cost from my personal life would be when I bought a new computer and tried to sell it three years later, I cannot make up what money I lost. A typical sunk cost for an IT project would be the cost of getting new software than a month later the software is cheaper than before. Many people fall into the trap of continuing to spend money on a failing project because so much money has been spent on it already.

4. Give examples of when you would prepare rough order of magnitude (ROM), budgetary, and definitive cost estimates for an information technology project. Give an example of using each of the following techniques for creating a cost estimate: analogous, parametric, and bottom-up. When requirements are not in detail and at a very high level, then a determinate solution could be a rough order of magnitude estimate which can vary . In Analogous Estimation, the cost of the project is guessed by comparing it with any similar project previously completed by your organization. Parametric estimation technique uses historical information along with statistical data. The bottom-up estimating technique is also known as the definitive technique. This estimation technique is the most accurate, time-consuming, and costly technique to estimate the cost.

5. Explain what happens during the process to determine the project budget. Project cost budgeting involves allocating the project cost estimate to individual work items over time to create a cost baseline. For example, you may need to break down costs into specific categories like travel, compensation, etc. for each month so…

Related Documents: Essay on Project Management and Cost

PROJECT MANAGEMENT OBJECTIVES A project is a planned series of related activities for achieving a specific business o bjective. Information systems projects include the development of new information systems, enhance- ment of existing systems, or projects for replacement or upgrading of the firm’s information technology (IT) infrastructure. Project management refers to the application of knowledge, skills, tools, and t echniques to achieve specific targets within specified budget and time constraints…

Recordings Project
Web delivery of audio from the holdings of the Sound Archive will enable the British Library
to make a unique contribution to the new learning environment for UK higher and further
education, and will provide indicators to the vast untapped resource that lies beyond the very
small but compelling selection of recordings to be included in this project, thus contributing to
the British Library vision of ‘helping people to advance knowledge to enrich lives’.
Project Initiation…

Gabrielle Meeks
Dr. Sadu Shetty
BUS 517 Project Management
January 25, 2015
What business problem does the project solve?
Raises Funds for student majoring in IT and searching Internships. Keeping communities update with the latest technology and trends.
What are the major deliverables of the project?
Funds raised in specified amount
Organizational statement declaration
Database of all entities involved in project
What are the risks associated with project?
Financial
Liability
Organization's…

Good evening ladies, gentleman and esteemed guest, for those of you who don’t know who I am I’m Aaron.
Jacobs life mentor and hero, everything good about Jacob he got from me everything else that is bad he probably got from Danielle. Jacob has always looked up to me, thus tried to emulate me in every way hairstyle, his healthy eating life style and my good Christian values.
The first time I met Jacob was in the summer of 2010, back then I had a Jedi’s rat’s tail which I proudly displayed to…

can have biggest impact on a project is making unrealistic time line, and it is one of the most common reasons for project failure and improper planning. I have seen many projects not being successful due to timeline or reducing project scope in order to achieve the timeline. This type of situation can occur due to different reasons like over optimistic management, lack of technical capability in project management, pressure to meet the goal or budgeting issue. Management should work with team members…

module spec.
Aims
• To prepare you for your final year project
• To aid completion of the project proposal for the final year project
• To research a topic area and plan a scheme of work
• To structure a piece of academic/technical writing in the appropriate style
• To think critically about what you will produce and evaluate your ability to deliver the work
For your final year project you will be required to produce a proposal (it is not assessed). You…

we would have to look at project management. There are five major variables of project management that need to be used correctly to ensure we have a successful CRM and run into as little problems as possible. Them five major variables are scope, time, cost, quality, and risk. Scope defines what work is or is not included in a project. Time is the amount of time required to complete the project. Cost is based on the time to complete a project multiplied by the daily cost of human resources required…

Overview of Project Cost Management
According to an accounting textbook, cost is defined as a resource sacrificed or foregone to achieve a specific objective. It is something given up in exchange. It is necessary for project managers to understand project cost management since project costs money and consumes resources.
There are reasons for project cost overrun and these are as follows:
* Not emphasizing the importance of realistic project cost estimates from the outset. IT project cost estimates…

Words 2219 - Pages 9

* Test names and other trademarks are the property of the respective trademark holders. None of the trademark holders are affiliated with this website.